To ensure that T2S continues to meet the business requirements of its stakeholders, a change and release management process exists. It guarantees that new releases of the T2S software can be deployed effectively. Between 8 and 10 June 2018, release 2.0 was deployed in the T2S production environment. It was the first major release since the end of the T2S migration. One of the main improvements brought by this release is the operational resilience in a multi-currency set-up. It is an essential part of the preparations for the migration of the Danish krone to the T2S platform in October 2018. We would like to thank the entire T2S community for their support and efforts during this implementation.
By the end of 2017, 21 central securities depositories in 20 European markets had migrated to T2S and were able to settle securities transactions across Europe in central bank money. With an average of 570,000 securities transactions settled smoothly each day, T2S offers a single gateway to the European securities market.
The average daily value of settled transactions rose proportionately over the course of 2017, exceeding €800 billion per day in December. Read the 2017 T2S Annual Report for further up-to-date facts, figures and information on the evolution of T2S.
On 20 March a collective agreement between the national central banks (NCBs) operating TARGET2 and the central securities depositories (CSDs) operating TARGET2-Securities (T2S) comes into force.
The agreement allows for a common moment of entry for payments and securities transfers. It also provides participants in the systems with more clarity, in particular on the provision of information and on liability in the event that any one of them becomes insolvent.
The collective agreement is the latest milestone in the harmonisation of procedures and tools available to system operators using the T2S platform.
The post-trade harmonisation initiative triggered by T2S has been instrumental in the setting of common rules and procedures across the European securities markets. All 20 markets joining T2S committed to complying with the T2S harmonisation standards and their progress is regularly monitored by the ECB in collaboration with the national stakeholder groups.
The 8th T2S Harmonisation Progress Report covers the period from September 2017, when the final wave of central securities depositories migrated to the platform, to the end of the year. Over that time the T2S markets achieved 85% compliance with the T2S harmonisation standards and took major steps to address the remaining gaps. The report also acknowledges the EU-wide efforts, led by the European Commission, to tackle the remaining barriers to post-trade integration.
The Advisory Group on Market Infrastructures for Securities and Collateral has published a report on cross-CSD (central securities depository) activity in TARGET2-Securities (T2S). The report sheds light on the multiple ways in which T2S facilitates cross-border access to securities and provides an explanation as to why the settlement integration brought about by T2S is not captured by current cross-CSD statistics. It points out that the market is adapting to the new landscape and embracing the opportunities that T2S has to offer, despite certain obstacles hampering the establishment of a fully harmonised European domestic settlement market. The report also proposes that the current set of cross-CSD indicators should be refined to better monitor cross-CSD activity in T2S. Read the full report for more information.
The final T2S migration was a key milestone in the integration of the European securities market. It marked both the end of a ten-year journey and the beginning of a new era for T2S. We took this as an opportunity to interview T2S end users.
First, we meet Alex Dockx from JPMorgan, asking him about the opportunities and challenges created by T2S. Additionally, we discuss the impact of T2S on cross-border investment and on the European post-trade industry. Second, we meet Alain Pochet from BNP Paribas, asking him about how BNP Paribas Securities Services view the transformation of the post-trade industry in Europe following the arrival of T2S. Take a look at what they had to say!
With the successful migration of the Spanish and the Baltic markets, TARGET2-Securities (T2S) is now fully operational as one of the largest security settlement platforms in the world, settling an average of 550,000 transactions per day.
The T2S project to harmonise rules and procedures and develop an integrated securities settlement platform was officially launched in 2008. Read more on the role and impact of T2S in our latest MIP online article, for which we also spoke to Indars Aščuks, Associate Vice-President and Head of Baltic Markets at Nasdaq, and Jesús Benito, Chief Executive Officer of Iberclear.
Furthermore, we are continuing to monitor the markets’ compliance with the agreed set of harmonisation standards. The mid-year T2S harmonisation update looks at the four markets that recently connected to the platform as part of the final migration wave on 18 September 2017 – Estonia, Latvia, Lithuania and Spain – as well as the six markets that already joined T2S earlier this year. All of them demonstrate a good record of compliance.
As we near the completion of the T2S migration, we are continuing to monitor the markets’ compliance with the agreed set of harmonisation standards.
The mid-year T2S harmonisation update looks at the four markets that will connect to the platform as part of the final migration wave on 18 September 2017 – Estonia, Latvia, Lithuania and Spain – as well as the six markets that already joined T2S earlier this year. All of them demonstrate a good record of compliance with the T2S harmonisation standards. While there are still implementation gaps in the area of corporate actions across many T2S markets, the update takes note of the significant progress that has been made in addressing them.
The pan-European securities settlement service TARGET2-Securities (T2S) has made cross-border settlement in Europe easier and more efficient.
As the roll-out phase of the T2S project reaches its final stage with only one migration wave left, we take stock of the opportunities and challenges presented by a more integrated financial market in Europe. What has changed for market participants in Europe following the roll-out of T2S? And what areas should be addressed for users to reap the maximum benefits from T2S?
We have asked market participants to share with us their views on how T2S has transformed the post-trade ecosystem from the user perspective. In a two-part interview we speak with two T2S users: Stephen Lomas, Head of Market Policy Global Transaction Banking at Deutsche Bank (Part one), and Marcello Topa, Director EMEA Market & Policy Strategy at Citi (Part two).
Read this insightful interview and other news in MIP OnLine!
2016 has been another exciting year for T2S! The successful migration of two waves of central securities depositories (CSDs) brought a substantial increase in the volume of transactions settled through the platform. As of the end of February 2017, more than 500,000 securities transactions are settled every day.
The 2016 T2S Annual Report provides an overview of the operational activity of T2S, presenting key facts and figures from the past year. It also gives an insight into the preparations for the final migration wave in September 2017.
The report includes a comprehensive review of the costs and revenues associated with running the platform. For more information on T2S’s financial situation, you can consult the 2015 financial statements or the associated short explanatory note.
The Eurosystem is constantly working towards harmonising post-trade activities across European markets and enhancing the safety and efficiency of its services. How? Discover more about ongoing and future initiatives in the report!
6 February 2017 was the first operational day on T2S for the clients of six central securities depositories (CSDs) from Austria (OeKB CSD), Germany (Clearstream), Hungary (KELER), Luxembourg (LuxCSD), Slovakia (CDCP) and Slovenia (KDD). Following the successful migration over the weekend, the volume of securities transactions now being settled on the platform has almost doubled. This is the largest T2S migration wave so far, in terms of both the number of CSDs and the increase in settlement volumes.
18 CSDs, representing 16 markets, are now settling securities transactions on the pan-European platform. T2S is thus making a solid contribution to post-trade integration in Europe.
Ahead of each migration wave, the ECB assesses how far T2S markets comply with a set of pre-defined post-trade harmonisation standards. The harmonisation agenda includes 24 technical, regulatory and market activities which are subject to regular monitoring by the T2S community. The latest harmonisation progress report shows that 70% of these activities are now fully complied with, compared with 63% five months ago.
Despite the remaining gaps in the area of corporate actions, all T2S markets have improved their overall compliance record in the past three years. Looking at the six markets which will join T2S on 6 February 2017, no major obstacles to achieving full compliance by their agreed deadlines are anticipated.
The European Commission’s efforts to build a capital markets union go hand in hand with the T2S harmonisation agenda insofar as they address some remaining barriers to cross-border clearing and settlement, such as conflict of law and withholding tax procedures.
2016 has been another successful year for T2S! T2S has grown significantly since the launch of the platform in 2015. With the latest wave of CSDs that joined the platform last September, T2S is now processing almost 50% of the total transaction volume expected by 2017.
The platform is running smoothly, making it possible for 12 European CSDs to safely and efficiently settle securities transaction in central bank money.
T2S is now entering a crucial year: the last two migration waves will take place in February and September 2017, bringing another nine CSDs on board. Community testing of wave 4 CSDs is progressing as planned and we are looking forward to welcoming them next February!
We wish you all a merry Christmas and a happy new year.
We are happy to welcome five new central securities depositories to T2S! Having successfully migrated over the past weekend, Euroclear Belgium, Euroclear France, Euroclear Nederland, VP Lux (Luxembourg) and VP Securities (Denmark) began operating on the platform as of 12 September 2016.
With wave 3 on board, T2S is now processing about 45% of the total transaction volume expected after the end of full migration in 2017. The next migration wave (wave 4) is planned for 6 February 2017.
The T2S migration plan is moving forwards as the wave 3 central securities depositories start the migration process today, Friday, 9 September 2016. The migration will take place over the weekend.
Euroclear Belgium, Euroclear France, Euroclear Nederland, VP Lux (Luxembourg) and VP Securities (Denmark) will start operating on T2S as of Monday, 12 September 2016.
Read about the wave 3 markets’ compliance with the post-trade harmonisation standards in the latest T2S harmonisation update.
The migration date of the third wave of central securities depositories joining T2S is quickly approaching and we have checked where they stand in terms of complying with the T2S harmonisation standards.
The mid-year T2S harmonisation update reports that the Belgian, Danish, Dutch, French and Luxembourgish markets joining the platform on 12 September 2016 are close to full compliance. They have already implemented most of the 16 harmonisation standards identified as high priority by the T2S Community and monitored by the T2S Advisory Group.
The markets which joined T2S with the second migration wave this spring also demonstrate a high level of compliance. Implementation gaps still exist in some areas, such as corporate actions, but T2S markets have done a great deal of work to address them.
To celebrate the first anniversary of T2S we are launching a new Special Series issue, A year with T2S – what’s next? Marc Bayle takes stock of where we are and looks ahead to consider the future direction of our common market infrastructure. In an interview, some of the main actors involved in the project share insights from T2S. And in a dedicated article you can find out what the market thinks about the future of real-time gross settlement and the consolidation of TARGET2 and T2S. To get a better understanding of the Eurosystem’s real-time gross settlement services, check out the new ECB explainer, What is TARGET2?. We hope you enjoy the read!